DISCLAIMER - The following paragraphs are "personal opinion only", but from the perspective of a 16+ year gaming industry veteran.
First off, I'm on MacRumors.com because well- I'm an all Apple gadget & Mac person (at home), but 2 weeks ago I decided that had to see what all the Android hype was about. So I actually bought an HTC EVO 4G with Android 2.2 (Froyo) and HTC sense just to see for myself. By the way, it is a fantastic phone with a beautiful large screen. The first thing I thought was I really hope the iPhone 5 has a big screen like this. It felt like what the screen size of phones "should be".
I'll get straight to the point; as of this current version of Android (2.2) that I evaluated, and especially the Android Marketplace, it is not on par with iOS and App Store. All my experience with it did was make me have a greater respect for iOS and App Store. Apple is clearly ahead of the game as far as mobile OS's are concerned.
Without going out on a completely negative note, I think Android and Marketplace have great potential, but Google needs to garner stronger platform support from big game/app publishers. Google then needs to hire indie game developers and form a Google Mobile Games division, and crank out quality games like Gameloft does on App Store. Google doesn't need a completely closed ecosystem to thrive, but it does need some degree of one to gain more support from the mobile development community.
Android phones are competent competitors with the iPhone, in fact; the one I got is actually amazing. However, there is one major flaw that has nothing to do with the phones themselves, or even the Android OS- it's that the Android Marketplace needs to mature with the presence of big game/app publishers. Sure there are a lot of "free apps", but I'm not looking for a bunch of free trial versions of things, I want to buy awesome games, and cool productivity apps. I can count on 1 hand all the good ones I had found, literally.
I have seen some demonstrations of Android 3.0 (honeycomb), it looks impressive, except there was what appeared to be problems with performance. They were showing a Kindle book, flipping through pages, and it was painfully slow to respond. I am very interested to see how the launch for the Xoom goes, and will definitely check one out. My perspective still is, that even if the Xoom is a truly remarkable device, and even if Android 3.0 is the best mobile OS ever, the Android Marketplace as it stands now, is unremarkable, and that is a deal breaker for me personally.
EOF personal opinions.